Dubai gold prices climb Dh3.50 as global rates surge
24-carat gold touches Dh392.50 as dollar slips
DUBAI: Gold prices opened the week stronger in Dubai, tracking international market trends and currency fluctuations.
The upward momentum reflects a broader rally in global bullion markets driven by a dip in the US dollar and investor focus on upcoming policy decisions by the US Federal Reserve.
Dubai gold prices
On Monday, May 5, the price of 24-carat gold climbed to Dh392.50 per gram, up from Dh390.50 the evening before.
Other purity levels saw similar gains: 22-carat gold rose to Dh363.25 per gram, up from Dh361.50; 21-carat moved up to Dh348.25 from Dh346.75; while 18-carat gold increased to Dh298.50 from Dh297.00, according to Dubai Jewellery Group data.
Global market push
Spot gold was up 0.7 per cent, trading at $3,263.48 (Rs 2,75,477.96) per ounce, as of 02:17 GMT. US gold futures mirrored the uptick, rising 0.7 per cent to $3,266.24. The dollar index slipped 0.3 per cent, making gold more appealing to holders of other currencies. Analysts anticipate the metal will remain in the $3,200–$3,350 range ahead of the Fed’s interest rate announcement on May 7.
Tim Waterer, chief market analyst at KCM Trade, told Reuters, “The US dollar is looking subdued ahead of the Fed meeting this week which is enabling gold to take a mild run higher.”
Fed policy watch
Market attention remains squarely on the Federal Reserve’s upcoming policy stance, particularly following a robust April jobs report from the US Labor Department. Traders now expect 80 basis points of rate cuts this year, starting as early as July.
President Donald Trump reiterated on Sunday that Jerome Powell will not be removed as Fed Chair before his term ends in 2026, while renewing calls for interest rate cuts. Meanwhile, discussions with global partners, including China, continue over fair trade agreements – a factor that may add further volatility to gold prices.